SC ordered Expeditious trial of cases under Section 138

Case Covered:

MAKWANA MANGAL DAS TULSIDAS

VERSUS

THE STATE OF GUJARAT AND ANR.

Read the full text of case here.

Facts of the case:

This Petition relates to the dishonour of two cheques on 27.01.2005, for a total amount of Rs. 1,70,000/- tried and contested over a period of 15 years up till this Court. A matter which is supposed to be disposed of summarily by the trial court in six months, it took seven years for this case to be disposed of at the trial court level. A dispute of such nature has remained pending for 15 years in various courts, taking judicial time and space up till this Court.

Dishonour of cheque, which originally gave the cause of action to file a civil suit, was criminalised in the year 1988, with the insertion of Chapter XVII in the Negotiable Instrument Act, 1881. Cheque dishonour, followed by default in payment after a demand notice, became punishable under Section 138 with imprisonment or fine which may extend to twice the amount of the cheque or both.

Observations of the court:

These are some indicative aspects in addition to what may come on board after hearing the relevant duty-holders. To work out a mechanism for expeditious and just adjudication of cases relating to dishonour of cheques, fulfilling the mandate of law and reduce high pendency, various duty-holders like Banks, Police and Legal Services Authorities may be required to take measures and prepare schemes. Thus, we find it necessary to hear them for evolving a concerted, coordinated mechanism for expeditious adjudication of these cases as per the legal mandate.

Let the matter be registered separately as Suo Moto Writ Petition (Criminal) with the caption ‘Expeditious trial of cases under Section 138 of N.I. Act, 1881’.

We request Shri Sidharth Luthra, Senior Advocate to assist the Court as Amicus Curiae. We also appoint Shri K. Parameshwar, Advocate as Amicus Curiae to assist him in the matter.

Issue notice to the Union of India through Law Secretary, Registrar General of all the High Courts, the Director-General of Police of all the States and Union Territories, Member Secretary of the National Legal Services Authority, Reserve Bank of India and Indian Bank Association, Mumbai as the representatives of Banking institutions. 

List both the matters on 16.04.2020.